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Check my Required information Exercise 25-9 Analyzing income effects from eliminating departments LO P4 [The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year. Dept.M Dept. Dept. o Dept. Dept. $97.000 $ 47,000 Total $332,000 583,000 $ 46,000 $ 69,000 Sales Expenses Avoidable Unavoidable Total expenses Net Incon (los) 18,800 59.000 72,800 $9.200 47,200 23,400 70.600 $(23,600) 18,500 6,000 24,500 558,500 23,000 58,500 81,500 (12,500) 56,000 22,400 76,400 $(30,400) 161,500 169,300 330.000 5 (1,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios Exercise 25-9 Part 1 (1) Management eliminates departments with expected net losses, DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. Dept. P Dept. T Total 0 Sales Expenses Avoldable 0 Unavoidable 0 Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Exercise 25-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Total Sales $ 0 Expenses: Avoidable 0 0 Unavoidable Total expenses Net Income (loss) 0 $ 0 $ 0 $ 0 $ 0 $ 0